Government investment boosts coastal shipping in Aotearoa
New Zealand is a step closer to a more resilient, competitive, and sustainable coastal shipping sector following the selection of preferred suppliers for new and enhanced coastal shipping services, Transport Minister Michael Wood has announced today.
“Coastal shipping is a small but important part of the New Zealand freight system, which is why the Government is investing in making coastal shipping a more viable alternative to strengthen and diversify our domestic supply chain, helping to secure New Zealand’s recovery from COVID-19. As a lower emissions transport mode, investing in coastal shipping will also help us achieve our decarbonisation goals,” Michael Wood said.
The Government has committed $30 million of funding for coastal shipping funding through the National Land Transport Programme (NLTP) to improve domestic shipping services, reduce emissions, improve efficiency and upgrade maritime infrastructure.
Waka Kotahi worked with the wider freight industry (NZ Shipping Federation, Port Company CEO Group, National Road Carriers, KiwiRail, and Te Manatū Waka - Ministry of Transport), to select four applicants for co-investment in new and enhanced coastal shipping services through the NLTP.
The four preferred suppliers are:
- Coastal Bulk Shipping Ltd
- Move International Ltd
- Swire Shipping NZ Ltd
- Aotearoa Shipping Alliance
“With the freight industry’s support, these additional services will help to resolve immediate challenges to the coastal shipping and the wider freight sector, address some of the current issues facing the international and domestic supply chains and provide a platform for future growth across all modes with increases in capacity and capability for both new and existing bulk materials and containerised cargo,” Michael Wood said.
“Each of these four selected suppliers will bring at least one additional coastal shipping vessel into service, and together this will improve the resilience of the overall freight supply chain.
“The four preferred suppliers will invest over $60 million through their proposals, resulting in combined investment in the sector of over $90 million.
“When the new services are fully operational, it is estimated they will remove around 35 million kilometres of truck travel from New Zealand’s roading network every year, reducing wear and tear and improving safety for road users, while at the same time creating new employment opportunities for mariners and supporting regional development. This will also support our commitment in the recently released Emissions Reduction Plan to reduce emissions from freight transport by 35 per cent by 2035.
“Through this funding we are taking an important step towards better utilising the blue highway, improving our freight system, and future proofing our national supply chain.
“In the meantime, we’re continuing work to mitigate supply chain problems caused by COVID-19, which includes increasing capacity through KiwiRail, extending the aviation support package so businesses can tap into international markets, and working with the sector to address issues as they arise,” Michael Wood said.